All Forum Posts by: Michael Wentzel

@Mike Gallagher In the two markets where we have rental properties in Colorado, our Realtor was able to go to a website and check public records for any properties that had been connected to Meth. I'm not sure if this was a city website or police or something else.

We go beyond this and try to talk neighbors. If there was meth or drug use in the house, they might know.

Finally, for one property we purchased we went down to the police station and asked them to pull up any records in relation to the property.

Maybe the chemistry kits will get you better results, but this is what we have done as part of our due diligence

Mike.

@Roy N. I appreciate the idea of giving Gift cards to local businesses. That is a great way to support local businesses while being generous towards your tenants.

@George C. There is a tension between business and friendship when you're are the landlord and depend on the rent to cover your bills. I think it is a fine line that we often stumble across, making mistakes on both sides.

@Ryan R. I think it is a reality that many Real Estate investors are serving tenants who often haven't been given the same opportunities as we have. Hence there is a place for generosity. As I build a larger portfolio, I would like to explore ways to impart life skills. Perhaps, offer a free month of rent at the completion of a financial management class. I'm just thinking about it now. By background is international development, so I think in this way and am interested in business that would have a bigger bottom line than just profit.

Thanks for all of the input. As far a marketing goes, I really like the idea of giving the tenant a discount at the renewal of their lease. As far as being generous goes, I'm going to stick with my Christmas cards and gift cards for the time being. Maybe I'll look for opportunities to support local businesses through this and be open to doing in sporadically throughout the year.

Mike

@John Rooster With that promise, maybe you could get your tenants to pitch in for the Powerball tickets. Or perhaps just add a $5 Powerball fee to their rent each month. Again, I appreciate the creativity.

Mike

@Thomas Williamson I really like your idea. It seems simple, but I haven't heard others share it in my limited time of educating myself on REI. I would guess there is a percentage (maybe 25%) that are going to move out no matter what and another percentage (maybe 25%) that are going to stay no matter what. So we're dealing with the people in the middle. The questions is, "How much is enough to pull them into staying for another year?" $100. $200. Half a month's rent. I really have no idea. I wonder if anybody has researched it.

@David Foster Again, excellent idea. I guess it would be limited to medium or large multi-family properties. If I have 20 sfh's all over town, the group meal becomes a bit more difficult.

I'm certainly encouraged to hear all of these ideas. It has given me some new ideas moving forward. It seems that generosity sometimes pays for itself in the form of lower turnover and less vacancies. That is great. It is my hope that I would also be willing to be generous in situations in which I receive nothing in return. I am sure there will be plenty of opportunities to practice both.

Mike

@Account Closed Thanks for the reply. I'm certainly willing to put some money into rehab. Have you helped any out-of-town investors pick-up properties in Columbus, OH? I have a few ideas, but why would you tell investors to buy in Columbus? Also, do you have neighborhoods or areas of town where you point investors?

We're just getting into real estate investing. We had two rental properties in Colorado and recently sold one. We're using the money out of that to pick-up our first multi-family. The market we're investing in here is relatively small. Hence we are looking for a metropolitan area in Ohio so we could diversify and have two focus markets.

We have limited cash for down-payments. So we're looking at low purchase prices (under $50,000 for sfh and under $100,000 for multi) and 2% rent to purchase price.

Mike

So I'm currently purchasing houses in southern Colorado for buy-and-hold. But I am originally from Ohio and have been considering markets back there. Cleveland has some beautiful houses for cheap prices. There seems to be opportunities to make money there. But then I noticed Columbus, Ohio has similarly cheap homes and has a stronger job market. I'm also more familiar with Columbus, having grown up in the suburbs. Looking around on BP and the internet, there doesn't seem to be much information out there on the Columbus market.

Who is working in Columbus, Ohio? What is your strategy? What are the pros and cons of the market there? Any guidance on neighborhoods that are decent where you can still find a deal?

I'm looking for sfh's for less than $40,000 and multi-families for less than $80,000 that have 2% rent over purchase price.

Mike

Here's an example where serving the tenant and even the neighbors seems to be in the best interest of the investor. A real estate company in Oakland was not only fixing up their own properties, but the properties throughout the neighborhood...

http://ncr.vt.edu/docs/Derek%20Hyra_WSJ_August%2013_13.pdf

Interesting idea. I think it was primarily motivated by profit, but I imagine most neighbors appreciated the free work done on their houses.

Mike

Thanks to everyone for the feedback.

Andrea M... I would like the wine or vodka gift. But how do you know if they want the alcohol or the gift card?

Others... I appreciated that you knew your tenants well enough to help them out in a hard time or give specific gifts cards to specific people. Well done.

I see that many of you are way ahead of me in this area. As property owners/ landlords, we sometimes go the extra mile because it is in our own best interest to have a happy tenants who stay a long time and pay on-time. I think this is understandable and a good way to manage a property.

I also think there is a place for simple undeserved generosity. As I thought about this idea moving forward, I considering only giving to those who paid on-time over the course of the year or giving more to the tenants who had been there longer. But in the end I've decided to just give to every tenant regardless of the promptness of their payment or length of time in the unit. It is just a gift, no strings attached.

Mike

Last year we tried something new. In early December, we sent both our tenants (we only had two units at the time) a Christmas card saying thank you and enclosing a $50 gift card. We did it mainly to say thank-you to people who are paying their rent and bless them during the Christmas season. Theoretically they might see it as a small perk of renting from us and stay longer, but that isn't the point.

Are there any more experienced investors out there (more years and more units) who given back to their tenants? Money? Gift Cards? Cookies?

Mike

Hey Marc,

I've been investigating the Cleveland market. I came across @Jorge Garcia on the BG forums. He has been really helpful. He buys, rehabs and manages properties in the Cleveland. So he might be a good one to ask about recommendations for a cleaner.

Mike